Kentucky’s Insurance Commissioner filed a lawsuit on May 13 in Franklin Circuit Court against the company originally hired to process and pay claims for the now-defunct Kentucky Health Cooperative (Co-op). The suit contends that CGI Technologies and Solutions, Inc. was grossly negligent in processing and paying claims and that it breached the contract it had with the Co-op.

The Co-op was created in 2012 under provisions of the Affordable Care Act to provide health insurance coverage to Kentuckians. After suffering severe financial losses, the Co-op was placed in rehabilitation in 2015 and, after further investigation, was placed into liquidation early this year when it was determined that the Co-op would never recover from its deep deficit.

Insurance Commissioner Brian Maynard filed the lawsuit in his capacity as the Co-op’s court-appointed liquidator. “We have a duty to investigate the causes of the Co-op’s collapse and to hold responsible those individuals who caused the collapse,” Maynard...